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Banking system

Banking system

Banking system: managed economies against capitalist states

The banking sector is one of the most critical aspects of a country’s economy, despite their preferred economic systems. Banks play a vital role in an economy by facilitating the allocation of funds from savers to borrowers. Banks accept deposits from their customers which they then use to provide financial support to consumers and business organizations.

Therefore, the financial sector is the most crucial determinant of economic growth and development, as banks provide the necessary capital. Some researchers have even argued that the status of a banking system is a good indicator of the country’s economic situation. This argument is also applicable to the Chinese and American economies, which depend heavily on their banking sector (Ding, Fung, & Jia, 2017).

However, financial institutions like banks develop unique structures and operations based on the preferred economic system of the country. For example, the banking system in a managed economy like China is fundamentally different from the banking system in capitalist systems like the United States. This article analyzes how the banking system in a managed economy like China is fundamentally different from the banking system in capitalist countries like the United States.

One of the most fundamental differences between the banking system in a managed economy and the banking system in a capitalist system concerns the ownership of financial institutions. Managed economies like China are characterized by strong government involvement in the planning and management of the economy. The state-owned People’s Bank of China was the only financial entity mandated to operate in the Chinese economy.

However, the country underwent reforms in the 1980s, allowing five other specialized public banks to operate in the country. The banks included ABC (Agricultural Bank of China), BoCom (Bank of Communications), BoC (Bank of China), CCB (Construction Bank of China) and ICBC (Industrial and Commercial Bank of China).

Other reforms included the offering to specialized banks of initial public offerings (IPOs), although the state still retains a controlling stake in the banks. Moreover, the little private property in the banking sector is mainly reserved for Chinese nationals with limited foreign investment in the authorized banking system. The Chinese government is reluctant to allow foreign investment in the financial sector because the banking system is closely tied to the state’s micro and macroeconomic policies. This ownership structure is fundamentally different from that adopted in capitalist societies like the United States.

Capitalist systems like the United States tend to look to private property in the banking sector to promote free market ideals promised under capitalism, although the state plays a critical role in regulating the sector through of the Federal Reserve system. The privatization of the banking sector in the United States has resulted in the largest number of financial institutions with more than five thousand financial entities in the country.

In addition, privatization has also resulted in the creation of many small banks, especially those regulated by state supervisory committees. The five largest financial organizations are private because the capitalist system adopts a free market system that encourages private ownership of these institutions. In addition, the US banking system allows significant foreign direct investment in financial institutions under free market capitalist principles. As a result, managed economies like China turn to state ownership while capitalist systems like the United States encourage private ownership throughout the banking system.

The regulatory environment for the banking system in managed economies like China is also fundamentally different from that of capitalist countries like the United States. Elliot states that the United States and China have taken very different directions when it comes to financial regulation (Elliot, 2017). The Chinese government plays a vital role in regulating the financial environment, especially banking activities, as does its role in ownership.

The government is essential in regulating the banking system since it regulates it internally through its ownership positions while maintaining an external regulatory role through state bodies. Ownership positions in the country’s major banks allow the government to direct the actions and operations of the banking system as the major public financial institutions dictate the functioning of the financial sector in the country.

The government’s external regulatory role also allows the Chinese government to control and manage the banking sector through the People’s Bank of China, acting as a central bank, and three other regulators: China Securities Exchange Commission , CIRC (China Insurance Regulatory Commission), and CBRC (China Banking Regulatory Commission) (He, 2012). However, the Chinese government has implemented reforms to regulate the financial sector, especially the banking system, and established the Committee for Financial Stability and Development (FSDC) in November 2017. The committee was entrusted with the task of role of super financial regulator and was created under the aegis of the Council of State. headed by a Deputy Prime Minister with more powers than the other regulatory commissions. Therefore, as Cousin excellently states, the state is the essence of the regulator of the Chinese banking system.

In comparison, the United States adopts a two-tier system that implies that financial institutions can be licensed by state governments or by the federal government (Labonte, 2017). However, regulators are independent from government interference and are free to pursue their policies as they see fit. For example, the Federal Reserve Bank, which serves as the central bank of the United States, is independent from government policies and actions, although it coordinates with government officials to ensure a unified monetary strategy.

However, the government has no power over the bank. Some of the main types of financial regulators at the federal level include consumer protection regulators, regulators of government-sponsored companies, securities market regulators, and custodian regulators (Labonte, 2017). Therefore, the state tends to play an important role in regulating the banking system in managed economies like China, while regulators are more independent in capitalist countries like the United States.

Finally, the banking system in managed economies like China is geared towards supporting government policies while that of capitalist countries is sensitive to free markets. Cousin states that “financial flows were organized around planning exercises for the whole economy and flows were directed to specific industries and regions based on policy decisions” regarding the Chinese banking sector (Cousin, 2012).

This statement implies that the main function of the banking system is to serve the macro and microeconomic policies of the Chinese government, which can sometimes be based on political considerations. For example, the banking system directs financial resources to priority sectors of the current political regime. In contrast, the banking system in capitalist societies like the United States is established to serve the market and responds to market changes appropriately. For example, US banks grant loans at their discretion without any direct government interference.

In conclusion, this article analyzes the fundamental differences between the banking system of a managed economy like China and the banking system applied in capitalist countries like the United States. One of the most fundamental differences between the banking system in a managed economy and the banking system in a capitalist system concerns the ownership of financial institutions. The regulatory environment for the banking system in managed economies like China is also fundamentally different from that of capitalist countries like the United States. Finally, the banking system in managed economies like China is geared towards supporting government policies while that of capitalist countries is sensitive to free markets.

The references

Cousin, V. (2011). The specificities of Chinese banking regulations.
Ding, N., Fung, HG and Jia, J. (2017). Comparison of bank profitability in China and the United States. China and the global economy, 25(1), 90-108.t
Elliot, DJ (2017). Living in two worlds: Chinese and American financial regulation. Center for Strategic and International Studies |. https://www.csis.org/living-two-worlds-chinese-and-us-financial-regulation
Him, WP (2012). Banking regulation in China: what, why and how? Journal of Financial Regulation and Compliance.
Labonté, M. (2017). Who regulates whom? An overview of the US financial regulatory framework.

Follow the latest news live on CEOWORLD magazine and get updates from the US and around the world. The opinions expressed are those of the author and are not necessarily those of CEOWORLD magazine. Follow CEOWORLD magazine on Twitter and
Facebook. For media inquiries, please contact: [email protected]



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Banking system

Columbia Banking System, (COLB) gains 3.13% for August 27

Columbia Banking System, Inc. (NASDAQ: COLB) shares gained 3.13%, or $ 1.12 per share, to close at $ 36.91 on Friday. After opening the day at $ 35.94, shares of Columbia Banking System have fluctuated between $ 36.91 and $ 35.87. 356,393 shares traded in the hands, an increase from their 30-day average of 258,466. Friday’s activity brought the market cap of Columbia Banking System to $ 2,648,928,349.

About Columbia Banking System, Inc.

Based in Tacoma, Wash., Columbia Banking System, Inc. is the holding company for Columbia Bank, a full-service commercial bank licensed by the State of Washington with operations throughout Washington, Oregon and Idaho. The bank has been named one of the “Best Places to Work in Washington” more than 10 times by the Puget Sound Business Journal and was recently ranked # 1 for customer satisfaction with retail banking in the region. Northwest by JD Power in the 2020 US Retail Banking Satisfaction Survey. Columbia was named the Northwest’s # 1 bank on the Forbes 2020 list of “America’s Best Banks” marking nearly 10 consecutive years on the publication’s list of top financial institutions. More information about Columbia can be found on its website at www.columbiabank.com. Columbia Bank received the highest score in the Northwest region of the JD Power 2020 US Retail Bank Satisfaction Survey for customer satisfaction with their own retail bank.

Visit the Columbia Banking System, Inc. profile for more information.

About the Nasdaq Stock Market

The Nasdaq Stock Market is a global leader in trading data and services, as well as the listing of stocks and options. The Nasdaq is the world’s largest stock exchange for options volume and is home to the five largest US companies – Apple, Microsoft, Amazon, Alphabet and Facebook.

For more information on Columbia Banking System, Inc. and to keep up with the latest company updates, you can visit the company profile page here: Columbia Banking System, Inc.’s Profile. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView on the basis of prices delayed by 15 minutes. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

DISCLOSURE:
The views and opinions expressed in this article are those of the authors and do not represent the views of equities.com. Readers should not take the author’s statements as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please visit: http://www.equities.com/disclaimer


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Banking system

Columbia Banking System (COLB) gains 1.95% on high volume on August 20

Columbia Banking System, Inc. (NASDAQ: COLB) gained to close at $ 36.52 on Friday after gaining $ 0.7 (1.95%) on volume of 266,476 shares. The stock ranged from a high of $ 36.59 to a low of $ 35.61, while Columbia Banking System’s market cap now stands at $ 2,620,939,130.

About Columbia Banking System, Inc.

Based in Tacoma, Wash., Columbia Banking System, Inc. is the holding company for Columbia Bank, a full-service commercial bank licensed by the State of Washington with operations throughout Washington, Oregon and Idaho. The bank has been named one of the “Best Places to Work in Washington” more than 10 times by the Puget Sound Business Journal and was recently ranked # 1 for customer satisfaction with retail banking in the region. Northwest by JD Power in the 2020 US Retail Banking Satisfaction Survey. Columbia was named the Northwest’s # 1 bank on the Forbes 2020 list of “America’s Best Banks” marking nearly 10 consecutive years on the publication’s list of top financial institutions. More information about Columbia can be found on its website at www.columbiabank.com. Columbia Bank received the highest score in the Northwest region of the JD Power 2020 US Retail Bank Satisfaction Survey for customer satisfaction with their own retail bank.

Visit the Columbia Banking System, Inc. profile for more information.

About the Nasdaq Stock Market

The Nasdaq Stock Market is a global leader in trading data and services, as well as the listing of stocks and options. The Nasdaq is the world’s largest stock exchange for options volume and is home to the five largest US companies – Apple, Microsoft, Amazon, Alphabet and Facebook.

For more information on Columbia Banking System, Inc. and to keep up with the latest company updates, you can visit the company profile page here: Columbia Banking System, Inc.’s Profile. For more information on the financial markets, be sure to visit Equities News. Also, don’t forget to sign up for the Daily Fix to get the best stories delivered to your inbox 5 days a week.

Sources: The chart is provided by TradingView based on 15 minute lag prices. All other data is provided by IEX Cloud as of 8:05 p.m. ET on the day of publication.

DISCLOSURE:
The views and opinions expressed in this article are those of the authors and do not represent the views of equities.com. Readers should not take the author’s statements as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please visit: http://www.equities.com/disclaimer


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Banking system

Expert economists: Myanmar’s military management of banking system is catastrophic and incompetent

Members of the Burmese military received doses of a Covid-19 vaccine imported from India without being informed that it had not yet been approved, according to military sources.

The military’s covert vaccination program, which used the Covaxin vaccine produced by Indian pharmaceutical company Bharat Biotech, began in January and continued for three months, the sources told Myanmar Now.

Those who received the vaccine were not told it was still in phase three of clinical trials at the time, according to several people who participated in the program.

“They said they were going to vaccinate us, then check our immunity two weeks after the jab to see if it had increased. So you could say it was a test, ”said an officer who was in the first group of test subjects.

The officer, who was stationed at a military hospital in Mingaladon Municipality in Yangon, told Myanmar Now that 15 soldiers, including himself, had blood drawn three times after each of the two shots they fired. received.

He said the program was then expanded to include more military personnel after reviewing the results of the first 15 subjects.

“I thought they were taking blood from everyone. But later we found out it was just us. We even joked that we were being used like lab rats, ”he said.

“It’s infuriating, but there’s nothing you can do about it because it’s the army.”

Involuntary volunteers

Another person who was to participate in the program as a test subject said it was carried out under the orders of senior officers.

“They wanted a study population to serve as a register of people who received the injections, maybe 100,000 people or so,” said a doctor at another military hospital in Yangon. “To be honest, I think it’s sad that we were used as human guinea pigs in this way.”

The doctor, who asked not to be identified, said two teams were involved in collecting data from those who had received the vaccine.

“There was one group of people who followed our body’s reaction to the vaccine – how many people developed a fever, how many became nauseous – and another who tested how much the amount of antibodies in our blood increased afterwards. vaccination, ”he said. noted.

The wife of a naval officer told Myanmar Now that her husband, who received the first injection in mid-February and the second a month later, finally learned that the vaccine he received was Covaxin, not the approved Covishield vaccine, also produced in India, which was used in the national immunization program launched by Myanmar’s civilian government days before it was ousted from power on February 1.

She added that although her husband was able to obtain this information because of his rank, it was unlikely that ordinary soldiers included in the army’s vaccination program would be aware of this fact.

Bharat Biotech began Phase 3 trials for Covaxin last November, but by early January it still hadn’t made much progress due to a lack of volunteers ready to try the vaccine.

The company, which has denied conducting clinical trials outside India, told Myanmar Now by email that it sent 55 vials of the vaccine to Myanmar in January, but added that it was ‘a common practice when dealing with potential buyers.

However, on February 11, another 200,000 doses of Covaxin were Shipped in Myanmar as part of the Indian government’s Vaccine Maitri diplomatic program, under which 1.5 million doses of Covishield had already been dispatched on January 22.

On January 27, Indian online media Mint reported that Bharat Biotech was seeking approval from the governments of Myanmar and Bangladesh to test Covaxin in both countries.

An official from the Indian Council for Medical Research (ICMR), a partner of Bharat Biotech in the production of the vaccine, is quoted in the article as saying that such trials are part of the normal procedure followed by countries seeking to procure vaccines. The article also noted, however, that Bharat Biotech declined to comment on the subject of foreign testing.

Unlike Covishield, which is manufactured by the Serum Institute of India under license from the multinational pharmaceutical and biotechnology company AstraZeneca, Covaxin was developed in India. By the end of June, it had received emergency use authorization in 16 countries, according to local media. reports.

The World Health Organization (WHO), which received a request for inclusion of Covaxin on its emergency use list in early July, has not yet completed its review of the data submitted.

Denial of the trial

Most government officials, including those in the former civilian government, deny knowledge of the military’s vaccine testing program.

Dr Win Myat Aye, who headed the Ministry of Social Welfare, Relief and Resettlement under the ousted government of the National League for Democracy, and Dr Zaw Wai Soe, who played a key role in efforts to this government’s response to Covid-19, and who is now Minister of Health in the shadow government of national unity, both said they were not aware of any Covaxin-related programs that may have existed prior to the Rebellion.

In late January, shortly before the military takeover, Health Ministry spokesman Dr Khin Khin Gyi told local outlet Eleven News that the government did not intend to test Covaxin in Myanmar.

In an interview with Myanmar Now on July 15, Dr Htay Htay Tin, deputy director of the National Health Laboratory and another leading figure in efforts to contain Covid-19, also said that no trials of Covaxin had been conducted. in Myanmar.

Less than a week later, Dr Khin Zaw, director of the Food and Drug Administration, said civilians were injected with Covaxin in April.

“We have already administered Covaxin vaccines in Myanmar. We have given all the vaccines given to civilians, ”he told Myanmar Now on July 21, adding that the vaccines had been approved by the FDA for use, not for testing.

He added that the public health department may have conducted trials using data collected from those who received the vaccine, but claimed it had already been proven to be safe and effective at the time. where it was administered.

Dr Than Naing Soe, one of the directors of the public health department, said the department has not conducted trials on Covaxin or approved research on the vaccine, although there have been discussions on this subject.

“We refused to do the tests here. We don’t want our people to suffer just because another country wants to test their vaccine, ”said Dr Than Naing Soe, who is also a spokesperson for the Ministry of Health under the current regime.

“Approve whatever is available”

While the junta has not admitted having carried out clinical trials on soldiers, senior regime officials have made no secret of their desire to use vaccines not approved by the WHO to fight Covid-19.

In February, coup leader Senior General Min Aung Hlaing mentioned Covaxin as one of the vaccines the regime planned to purchase, along with others from China and Russia.

In an interview with China’s state-run Xinhua News Agency in April, the Deputy Minister of Information of the Military Council, General Zaw Min Tun, also counted Covaxin among the vaccines for use in Myanmar.

As early as June, some companies claimed to have already received FDA clearance to import Covaxin. On June 23, a local pharmaceutical company called SML announced on Facebook that it was accepting pre-orders for the vaccine.

Dr Khin Zaw, director of the FDA, said SML was given the green light because it submitted its application with Bharat Biotech’s approval.

“If we were to deny anything that is still pending WHO approval, we wouldn’t be able to approve most drugs here. WHO-approved vaccines are almost impossible to get here at the moment, so we decided to approve whatever was available, ”he said.

Since the start of the third wave of the pandemic at the end of June, the junta’s health authorities have administered the Chinese Sinopharm and Sinovac vaccines to people over 65 years of age. These vaccines offer 51 to 79% protection against Covid-19.

The Chinese government donated 2.5 million doses of Sinopharm vaccine to Myanmar and the regime purchased 2 million doses of Sinovac.

Those familiar with the Covaxin trial program say the Indian vaccine has been shown to be largely ineffective in preventing infection.

The naval officer’s wife said almost everyone in her husband’s unit contracted the disease despite being vaccinated with Covaxin.

The Mingaladon Military Hospital officer said two-thirds of those who participated in the Covaxin trials were infected soon after the start of the third wave. Although they were vaccinated, many developed symptoms of Covid-19, he said.

“I first had a fever, then I lost my sense of smell. After that I got nauseous and stopped eating, ”he said, describing the first common signs of infection.

“I am not even going to test myself for Covid-19. I have treated Covid-19 patients in my ward, so I’m pretty sure I already have it, ”he added.

Myanmar Now is an independent news service providing free, accurate and unbiased news to the people of Myanmar in Burmese and English.


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